Dear Valued Customer,

RSE Incorporated has been significantly impacted by a 75% increase in coconut shell carbon costs since January 2025, due to a drought in our primary sourcing regions—Sri Lanka, Indonesia, India, the Philippines, and Malaysia. Additionally, recent tariff increases on imports of coconut shell carbon from key supplier countries have further compounded these cost pressures. Specifically, tariffs have risen as follows: from 4.36% to 20% for Sri Lanka, from 4.8% to 25% for India, from 4.8% to 19% for Indonesia, from 5.5% to 19% for the Philippines, and from 4.8% to 19% for Malaysia. These combined factors necessitate the implementation of a temporary surcharge, which will appear as a separate line item on invoices for all products containing coconut shell carbon.

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To maintain our commitment to quality and service, this surcharge is effective August 1, 2025, and applies only to these specific products. It will be reviewed as market conditions stabilize, with an anticipated return to normal pricing next year. Any request for quotation issued on or after August 1, 2025, will include the surcharge and is valid for 30 days. For quotations received prior to August 1, 2025, purchase orders must be submitted within 30 days of the quotation date, with the original quote attached, to be accepted without the surcharge. Please note that no orders will be accepted without the applicable tariff surcharge after August 31, 2025.

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Please contact RSE Incorporated directly to request a quote and confirm the current surcharge for any product containing coconut shell carbon, as rates may vary based on specific sourcing and product details. This surcharge will be reviewed on the first of every month.

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We appreciate your understanding and continued partnership as we navigate these unprecedented supply and tariff challenges. For any questions or further details, our team is available to assist you.

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Sincerely,
RSE Incorporated